Local News
Sebring council holds back payment to utility
Richard Hensley | Highlands Today
Published: November 22, 2012
SEBRING - The city won't be making its annual $115,487 payment to Highlands Utilities Corp. because city council members are not happy with the amount of time it has taken for the utilities company to acquire the final two easements that are part of the deal.Published: November 22, 2012
The council voted unanimously to withhold payment at Tuesday evening's regular council meeting despite pleas from Highlands Utilities' attorneys that they are nearing completion on one of the two easements and will likely file suit to gain the last one.
The council is upset that it has taken so long to attain easements. Members had given the utilities company until Sept. 30 to complete the process, but it has dragged on. The city has about $75,000 left in an escrow account to ensure completion of the easements.
The city purchased Highlands Utility's wastewater operations in 2008. All that's left is the Jackson Plaza easement and the Sebring Falls easement, according to Bridget Grimsley, an attorney with Sundstrom, Friedman & Fumero, the Lake Mary law firm representing Highlands Utilities.
The original 2008 contract between the city and Highlands Utilities is for a $1.4 million total price paid by the city, with $900,000 paid at closing and $114,487 being paid annually to for the other $500,000.
Marty Friedman, another attorney for Highlands Utilities, said the out-of-town owner of the Sebring Falls easement has been unwilling to settle and that her Tallahassee attorney won't even talk to them. He said filing a lawsuit is almost inevitable but could take another year or two for it can be resolved.
Friedman explained the complexities of attaining easements but the council didn't accept excuses for the time it has taken.
Arthur Marrero, of MVP Properties, explained to the council that proposed changes the city attorney made to a deal he presented them didn't take into account the actual value of Harder Hall. The city wants about $4 million for the property, which is what the city purchased it for when they took it back from a previous developer.
Marrero said the last buyer of the property paid $1.8 million when real estate prices were strong and then put money into restoring it. Now all that work will most likely be torn out because it's been ruined and other repairs are likely.
City council members voted to put together a negotiating team to discuss Marrero's proposal with him.
rhensley@highlandstoday.com (863) 386-5843